Latvia is set to become the 18th country to adopt the euro as its currency, following an EU decision that the country now satisfies the conditions for joining the Eurozone.

Latvia will adopt the euro from January 1st 2014, and as a full euro member, Latvia will be able to take part in all the key decisions in the eurogroup of ministers and the board of the European Central Bank.

This means six out of the twelve countries who joined the EU since 2004 will have adopted the euro. (The others are Slovenia in 2007; Cyprus and Malta in 2008; Slovakia in 2009; and Estonia in 2011.)

Latvia was one of the non-euro Member States (along with Romania and Hungary) to receive an EU-IMF financial assistance programme after the 2008 economic crisis.

“Latvia’s experience shows that a country can successfully overcome macroeconomic imbalances, however severe, and emerge stronger. Following the deep recession of 2008-9, Latvia took decisive policy action, supported by the EU-IMF-led financial assistance programme, which improved the flexibility and adjustment capacity of the economy within the overall EU framework for sustainable and balanced growth. And this paid off: Latvia is forecast to be the fastest-growing economy in the EU this year,” Olli Rehn, European Commissioner for Economic and Monetary Affairs said in Brussels today.

Mr Rehn added that Latvia’s desire to adopt the euro is a “sign of confidence in our common currency and further evidence that those who predicted the disintegration of the euro area were wrong”.